GST

Bank guarantee not required for export. Letter of Undertaking, in place of bond shall be allowed

Bank guarantee not required for exporting goods or services. To facilitate exports under GST, Letter of Undertaking, in place of bond shall be allowed 

Press Information Bureau 
Government of India
Ministry of Finance
30-September-2017 12:55 IST

Facility of furnishing Letter of Undertaking extended to more exporters 

Small exporters have brought to the notice of the Government the difficulties in furnishing bond with requisite bank guarantee. To facilitate exports under GST, it has been decided that the facility of furnishing Letter of Undertaking, in place of a bond, for exporting goods or services or both shall be allowed to exporters and no bank guarantee will be required.The relevant notification for this shall be issued in due course. 

The issue of cash blockage is expected to be partially addressed by this measure. More measures are under consideration. 

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